‘Landmark deal': Pakistan's stock market gains on optimism over US trade negotiations
The KSE-100 Index climbed past the 147,000 points mark during intraday trading and closed at 146,929.84, up 1,547.05 points, or 1.06 percent, from Friday's close of 145,382.79.
Positive investor sentiment has been underpinned by US President Donald Trump's 19 percent tariffs on Pakistani imports announced last month, which officials say will pave the way for renewed investment by American firms and deepen economic ties between the two countries.
Topline Securities, a Karachi-based brokerage, said market giants like Mari Petroleum Company (MARI), Bank AL Habib Limited (BAHL), Oil and Gas Development Company (OGDC), Meezan Bank Limited (MEBL) and Muslim Commercial Bank (MCB) dominated Monday's rally, collectively adding 959 points to the index.
'Sentiment surged after reports of US firms gearing up to invest in Pakistan's energy sector, further reinforced by better-than-expected corporate results that added to the market's upbeat tone,' the report said.
The total traded volume reached 607 million shares with a trading value of Rs43.95 billion. Lotte Chemical Pakistan Limited (LOTCHEM) led the volumes chart, with 73 million shares changing hands.
Market analysts say the positive momentum reflects growing investor confidence in Pakistan's economic prospects, helped by strengthened US ties that are expected to support further gains in the near term.
Pakistan's State Minister for Finance, Bilal Azhar Kayani, described the US trade pact as a 'landmark' deal, saying the 19 percent tariff was the lowest in the South Asian region.
'And the agreement with more details will be negotiated and discussed in the months ahead,' he said during an interview with Bloomberg.
'Which would include various aspects, rules of origin or market access or tariffs per specific lines reciprocally.'
Kayani noted that the US was Pakistan's largest export destination, accounting for $6 billion of the country's $32 billion in exports last fiscal year.
Pakistan's exports to the US are dominated by textiles and garments, but also include leather goods, surgical instruments, sports equipment, chemicals, carpets and seafood, according to the Ministry of Commerce.
The new trade agreement comes amid signs of a thaw in relations between Islamabad and Washington after years of friction over security and counterterrorism. The Biden administration maintained a cautious approach toward Pakistan, but Trump has spoken warmly of his interactions with Pakistani officials, including an unprecedented two-hour meeting in June with the Pakistan army chief. More recently, US officials have emphasized trade and investment cooperation, particularly in crypto, energy, textiles, and information technology sectors.
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